The role of a stockbroker in trading shares

When you’re a private investor, you can’t simply call up the JSE and tell them you’d like to buy a few thousand shares in Anglo American. That’s just not how the market works. And that’s where stockbrokers come in. Let’s take a closer look at the role stockbrokers play in the buying and selling of shares.

Your transactions on the stock exchange take place through a stockbroker…

To buy or sell shares, you have to place your order with a registered stockbroker.

The JSE sets many rules and regulations around how brokerages need to work and what will happen it the brokerage goes bankrupt—which might sink your money along with it! These rules exist to protect your money.

In essence, stockbrokers are the middlemen between you and the exchange.

When you want to start buying and selling shares, you need to source a reputable stockbroker. They’ll need to have a licence to trade on the JSE.